Stocks rise as China exempts certain U.S. imports from tariffs.
The U.S. stock market extended its rally on Thursday after China announced it would waive tariffs on certain American-made goods.
All of Wall Street’s major indices finished higher, with the Dow Jones Industrial Average (NYSEARCA:DIA) notching its seventh straight gain. The blue-chip index closed up 45.41 points, or 0.2%, to 27,182.45.
The broader S&P 500 Index (NYSEARCA:SPY) rallied 0.3% to close at 3,009.57. Most of the 11 primary sectors reported gains, led by materials. Information technology, real estate and financials stocks also outperformed.
Meanwhile, the technology-focused Nasdaq Composite Index (NYSEARCA:QQQ) jumped 0.3% to 8,194.47.
A measure of 30-day volatility known as the CBOE VIX (NYSEARCA:VXX) declined on Thursday, falling to its lowest level in over a month. The so-called “fear index” fell 2.7% to 14.21 on a scale of 1-100 where 20-25 represents the historic average.
Markets rallied on Thursday after China announced it would waive duties on American industrial imports, a move that some see as a goodwill gesture ahead of planned negotiations next month. Both countries remain locked in a bitter trade dispute that has that has impacted business investment and economic growth.
On the policy front, the European Central Bank (ECB) lowered its deposit rate to -0.5% on Thursday and announced plans for new stimulus measures, as officials sought proactive measures against deflation and slowing economic growth.
The Final Word: With the ECB lowering interest rates on Thursday, many expect the Federal Reserve to do so again next week. Members of the U.S. central bank are widely expected to cut interest rates by 25 basis points at their forthcoming meeting.